China

CN-9:Energy Efficiency Appraisals for New Large Industrial Projects

Policy Description

The Energy Efficiency Appraisals for New Large Industrial Projects policy applies to all the fixed-asset investment projects that are under the administration of the Development and Reform Commissions (DRC) of central and local governments. Designed by the National Development and Reform Commission (NDRC), this policy includes two parts:

  1. an energy-efficiency assessment, which assesses the project’s energy efficiency based on energy-efficiency regulations and standards, and compiles the Energy-Efficiency Assessment Reports and Reporting Forms; and
  2. an energy-efficiency review, which reviews the submitted Energy-Efficiency Assessment Reports and Forms, and subsequently provides feedback and comments. Projects without an energy-efficiency assessment and an energy-efficiency review cannot be approved for construction or operation. 

Description

In September 2010, China announced the Interim Regulation of Energy-Efficiency Assessment and Review on Fixed-Asset Investment Projects [1]This policy took effect on November 1, 2011.

Fixed-asset investment projects not only need to meet the requirements of land assessments and environmental assessments, but also need to pass the energy-efficiency assessments, in order to be accepted for further review and approval.

This policy applies to the domestic fixed-asset investment projects that are under the administration of the Development and Reform Commissions (DRC) of central and local governments. International projects are not under the interim regulation.

Designed by the National Development and Reform Commission (NDRC), this policy includes two parts:

  1. an energy-efficiency assessment, which assesses the project’s energy efficiency based on energy-efficiency regulations and standards and requires the project investor to write Energy-Efficiency Assessment Reports and Reporting Forms; and
  2. an energy-efficiency review, which reviews the submitted Energy-Efficiency Assessment Reports and Forms, and subsequently provides feedback and comments.

Energy-efficiency assessments and reviews (i.e., energy efficiency appraisals) are prerequisites for examination, approval, and construction of fixed-asset projects. Without an energy-efficiency review or if a project fails to pass the energy-efficiency review, government authorities cannot approve any new construction. Projects that are already built that do not pass the energy efficiency appraisal cannot be operated.

There are three categories of energy-efficiency assessments depending on the annual energy consumption of the projects after they have been built and operated. Projects that:

  • consume no less than 3,000 tonnes of coal equivalent (tce) (electricity converted at heating value),
  • consume more than 5 GW of electricity,
  • consume more than 1,000 tonnes of oil, or consume more than 1 million cubic meters of natural gas,

Project owners are all required to submit the Energy-Efficiency Assessment Reports.

Projects that consume 1,000 – 3,000 tce (electricity converted at heating value), or consume more than 2-5 GW of electricity, or consume more than 500-1,000 tonnes of oil, or consume more than 0.5-1 million cubic meters of natural gas, are required to submit the Energy-Efficiency Assessment Reporting Forms.

The Energy-Efficiency Assessment Reports include the following items: 

  • Assessment methods/basis 
  • Project overview
  • Assessment of energy supply, including conditions of local energy resources and impacts on local energy consumption
  • Energy-efficiency assessments of project construction, including site selection, production processes, energy-using processes and energy-using equipment
  • Energy consumption and energy-efficiency assessments, including energy consumption, energy consumption structure, energy efficiency levels
  • Assessment of energy-efficiency measures, including technology and management measures
  • Existing issues and suggestions
  • Conclusions

The analysis of energy-efficiency assessments can be based on energy-saving regulations, laws, industrial regulations and policies; product standards and norms; energy-efficient technologies and energy-efficiency levels; or national catalogues of promoted and/or phased-out technologies, products, and processes. 

Energy-efficiency reviews are managed at different levels of the DRCs.

  1. For projects that apply for approval at the level of NDRC or the State Council, reviews are administrated by NDRC.
  2. For projects that apply for approval through local governments or local DRCs, reviews are managed by the ocal DRCs.

NDRC or the local DRCs can commission institutes or organizations to conduct the energy-efficiency reviews upon receipt of the energy-efficiency assessment reports. The costs of energy-efficiency reviews are covered by responsible governmental agencies. Guidelines for energy-efficiency reviews have also been issued.

Policy Information Expand this section for information on the key features of the policy, such as its date of introduction, categorization, main objective(s) and linkages with other policies.

Policy Categorisation

Policy Instrument Type: Administrative

Position in the Pyramid

About Us

Participation: Mandatory

Period

Start Date: 2010

End Date: 2015

Policy Linkages

Supports Energy and Carbon Intensity Targets of the 12th Five Year Plan Effort Defining
Supports Top-10,000 Energy-Consuming Enterprises Program Effort Defining
Supports Ten Key Projects Program Supporting Measure

Agencies Responsible

National Development and Reform Commission

Primary Objective: Energy

Objective

• Strengthen the management and administration of fixed-asset investment projects • Promote energy efficiency and rational use of energy • Reduce energy wastes of new projects, control the sources of energy use

Target Group

• New construction or fixed-asset investment projects

Driver of energy consumption or emissions affected by policy: Improving energy efficiency

Implementation Information Expand this section for information on targets, monitoring, verification and enforcement regimes, and implementation requirements and tools.

Coverage

All fixed-asset investment projects that are under the administration of the Development and Reform Commissions of central and local governments

Quantitative Target? no

Progress Monitored? yes

Verification Required? yes

Enforced? yes

Sanctions: If fraud is found in an energy-efficiency assessment report, the approval shall be revoked with a requirement to submit a modified report. If fraud is found in government authorities or personnel in charge of the review, they shall be punished with disciplinary sanctions or criminal charges.

Requirements on the Target Group

  • Conduct an Energy-Efficiency Assessment by hiring third-party institutes
  • Submit Energy-Efficiency Assessment Reports and/or Reporting Forms based on the guidelines
  • Fill the Energy-Efficiency Registration Form

Support by Government

  • The costs of energy-efficiency reviews are covered by responsible governmental agencies.

  • Guidelines for energy-efficiency reviews have also been issued.

Implementation Toolbox

Guidelines on Developing Energy Saving Assessment Reports for Iron and Steel Sector 

  • The Chinese government requires all new and large fixed-asset investment to conduct energy-efficiency assessments and energy efficiency reviews. As a part of this, the Chinese government issued specific guidelines for the iron and steel sector, on how to prepare the reports for energy-saving assessments of fixed-asset investment projects. 

Guidelines for energy-efficiency reviews

Complexity of Implementation

Government

Unclear

Target Group

Unclear

Impacts, Costs & Benefits Expand this section to find information on policy effectiveness and efficiency.

Impact Quantitative Estimate Qualitative Estimate
Estimated effect on energy consumption or emissions This policy is expected to enhance the enforcement of energy conservation regulations, and energy-efficiency standards at the project-level. It also has a positive impact on constraining the building of new projects.
Estimated costs/benefits for industry
Estimated cost for government

References & Footnotes

References

[1] NDRC, 2010. Interim Regulation of Energy-Efficiency Assessment and Review on Fixed-Asset Investment Projects. http://www.ndrc.gov.cn/zcfb/zcfbl/2010ling/W020100921572054070349.pdf